Category Archives for Legal/taxes
There’s No “Due on Sale Clause” Jail
The “due-on-sale” clause is probably the most talked about, feared and misunderstood topic in real estate. This article will dispel any misunderstandings you may have about the due-on-sale and explain how to take a property subject to an existing mortgage. What is the Due-on-Sale Clause? Before we discuss how to get take a property subject […]
Continue readingHow to Save Up to 90% on Title Insurance
If you have ever bought or sold real estate, you have probably paid for title insurance. What exactly is title insurance? Why do we need it? How can I save money on title insurance? These are common questions asked by real estate investors, both rehabbers, and landlords. Whenever title passes, the seller usually gives a […]
Continue readingThe Mortgage Elimination Scam
The mortgage elimination scam has been sweeping the country. You’ve seen the emails: “Legally eliminate your mortgage!!” Can this possibly be true? Well, I’ve read the claims and researched the law and here’s what I came up with. The Claim The claim is that you can legally eliminate your mortgage based on an accounting loophole […]
Continue readingTaxes on Subject to Deal
Taxes on subject to dealscan be a bit complicated. For example, you buy a property “subject to” an existing loan. You sell the property on an installment land contract or lease/option. What are the tax ramifications? Part One – Determining Your Basis Your tax basis is basically what you paid for a property. If you […]
Continue readingLand Trusts Video
Land trusts are an excellent tool for keeping your ownership of properties secret from the public. Attorneys, tenants, ex-spouses, the government and others can easily find the owner of a property online. Anyone with a judgment can slap a lien on your property, prevent you from selling or refinancing your property. If you want to […]
Continue readingDo You Need a License to Wholesale Properties?
You buy a property, you wholesale it, you profit. Do you need a license to wholesale properties? In most cases, the answer is “no”. Real estate brokerage is an activity regulated by states on their own terms, thus each state defines which activities require a license. There is a lot of vagueness and ambiguity in some of […]
Continue readingCan a Buyer Be Held Liable Earnest Beyond Earnest Money?
The “standard” real estate contract usually has a provision spelling out the legal remedy of the buyer or seller upon default of the agreement. In most cases, the buyer wants to limit his risk of loss by offering a small earnest money deposit and inserting a “liquidated damages” provision. A liquidated damages provision states that […]
Continue readingTop 10 Ways to Get Sued
Here it is, the official, “Top 10 Ways to Get Sued” – guaranteed! 1. Do Business in Your Own Name. The average person is sued three times in their life. The average business person is sued every 3 years. By doing business with the public you’ve got customers, and eventually you are going to tick […]
Continue readingBeware of the “Wholesale” Scam
This article was first written in 2006, but now that the market is coming back, this scam is again rearing its ugly head! Every newbie investor hears that it is imperative to buy real estate “wholesale”, not retail. The problem is, most newbies don’t know what a wholesale deal is, and there are a number […]
Continue readingThe Mortgage Elimination Scam
The mortgage elimination scam has been sweeping the country. You’ve seen the emails: “Legally eliminate your mortgage!!” Can this possibly be true? Well, I’ve read the claims and researched the law and here’s what I came up with. The Claim The claim is that you can legally eliminate your mortgage based on an accounting loophole […]
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